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Christian Lindner promises tax relief for 48 million citizens

2022-08-10T08:32:32.313Z

Federal Finance Minister Christian Lindner wants to relieve the burden on citizens with a tax cut of more than ten billion euros. According to his interpretation, it is primarily those on lower incomes who should benefit.



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Federal Minister of Finance Lindner: Criticism from the Greens, SPD and Left

Photo: Kay Nietfeld / dpa

Federal Finance Minister Christian wants to cushion the high inflation for the citizens.

A so-called inflation compensation law is planned for this purpose, which, according to SPIEGEL information, provides for higher child benefits and a tax reduction.

The basic allowance is to be increased, i.e. the income up to which no tax has to be paid.

Lindner wants to raise this limit from the current EUR 10,347 to EUR 10,632 in the coming year and EUR 10,932 in 2024.

Other key values ​​of the tax rate will also be shifted in order to compensate for the effect of the cold progression.

This is a type of creeping tax increase, when a salary increase is eaten up by inflation, but still results in higher taxation.

In order to mitigate them, the top tax rate should in future only apply to higher incomes.

Specifically, at 61,972 euros in the coming year and at 63,515 euros in 2024. Lindner does not want to touch the limit for the even higher tax rate for the wealthy.

There is already criticism that top earners would benefit more from the FDP politician's plans in absolute terms than low earners.

Source: spiegel

All business articles on 2022-08-10

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